Update: The Senate passed its version of the $35.8 billion state budget Tuesday by a 39-10 vote, with one Democrat joining all Republicans to approve the measure.
Democrats unsuccessfully tried to amend the budget on Monday to raise the minimum wage, increase the cigarette tax, restore various line items that had been cut 15% during the pandemic, increase teacher pay and put an end to phased-in corporation tax cuts implemented under former Gov. Mike Pence, among other amendments. It s still not a budget that I can vote for, said Sen. Eddie Melton, D- Gary. There s still some things in here that doesn t address in totality what I feel that every single Hoosier want to see accomplished or needed in this session.
Unlike the House proposal, the Senate s version does not include a cigarette tax increase.
It still does include money for police training to replace dollars that usually comes from the purchase of lifetime handgun carry permits. Senate president Pro Tempore Rodric Bray had promised to make the permit free when he killed a bill to completely nix any permit requirement.
On the mental health side, the Senate is dedicating $50 million for the Health Issues and Challenges Grant Program and $100 million to the Family and Social Services Administration to address mental health issues.
Cigarette tax
Bray said the Senate was not interested in the cigarette tax, partially because it is a regressive tax, meaning it impacts lower-income households at a disproportionate rate. He also argued it was not large enough to truly impact smoking rates in Indiana.
Senate Republicans dedicated more money for mental health resources and students living in poverty in their version of the 2-year $35.8 billion budget Thursday, a proposal that Senate Democrats praised as at least a step forward.
Still, Democrats had concerns about the lack of a cigarette tax increase, absence of action to address teacher pay and what they see as an inequitable school-funding formula. They unsuccessfully tried to amend the budget and likely will try again before it passes the full Senate.
The House had passed its version of the budget in February. The Senate s version still does include money for police training to replace dollars that usually comes from the purchase of lifetime handgun carry permits. Senate president Pro Tempore Rodric Bray had promised to make the permit free when he killed a bill to completely nix any permit requirement.
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